Volcanic Gold Mines Inc. is a Canadian mining company. The company was incorporated in April 2007 according to the Business Corporations Act of British Columbia with a head office in Vancouver.
Volcanic Gold with the ticker VG is listed on the TSX Venture Exchange. The natural resource miner is primarily involved in the identification, acquisition, evaluation, exploration and development of mineral properties, primarily precious metal ones.
The company operates two projects in its mineral exploration portfolio:
The Holly Project consists of low sulphide gold and silver epithermal mineralization. The project lies in eastern Guatemala and shares physical characteristics with the renowned Escobal and Cerro Blanco gold-silver mines. It hosts various mineralized quartz and vein systems that intersect the Jocotan Fault. The project is well connected via road and located just 60 kilometers away from the processing facility (operated by Bluestone).
The Banderas Project comprises gold-silver bearing epithermal mineralization in the form of veins and breccias spanning an area of nine square kilometers in eastern Guatemala.
Volcanic Gold Mines signed an option agreement with Radius Gold Inc. to acquire certain interests in the Holly and Banderas Projects. According to the agreement, the company can own a 60 per cent stake in both the projects. In return, it needs to spend a total sum of US$7 million on the exploration work at the project sites, within the time frame of 48 months from the agreement.
Volcanic Gold must spend an initial amount of US$1 million on exploration programs, including a minimum of 3,000 meters of drills, within a year after getting the necessary drilling permits. Following the terms and conditions met, it will become a joint venture partner with a majority stake i.e., 60 per cent.
In addition, the company has an exclusive right to evaluate other Guatemala-based mineral projects of Radius Gold. It can also acquire stakes in these projects under agreed rational terms.
This gives it an exceptional opportunity to strategically earn interest in projects and expand its asset holdings. Volcanic Gold is working on exploration and drilling programs to discover, evaluate and explore prospective targets and enhance the mineral resource potential of its projects. It is focused on identifying new and underexplored gold projects to exploit mineral resource opportunities and expand its portfolio.